A Partnership Terminates for Tax Purposes

question 23

Multiple Choice

A partnership terminates for tax purposes

• A)only when it terminates under local partnership law.
• B)when at least 50% of the total interest in partnership capital and profits changes hands by sale or exchange within twelve consecutive months.
• C)when the sale of partnership assets is made only to an outsider(s)and not to an existing partner(s).
• D)when a partnership tax return (Form 1065)ceases to be filed by the partnership.

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Definitions:

Well-Prepared Negotiators

Individuals who have thoroughly researched, planned, and strategized for a negotiation, including understanding the other party's needs, strengths, and weaknesses.

Resistance Point

The least favorable point at which one will accept a deal during negotiations, beyond which they prefer no agreement.

Expected Outcome

The anticipated result or consequence of an action or situation, based on predictions or prior experience.

Value

The importance, worth, or usefulness of something.